Tornado Alley (PROG)

[dickmilde]

KRUGMAN... The master of confusion...

Or perhaps more clearly stated the master of confused!

Based on his text and associated chart he would have you believe that there is no inflation... Much as in this item:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=56529504

So now he is making a case that "core inflation" wouldn't be much different if you left out "Owner's equivalent rent". The obvious fallacy is of course that "Owner's equivalent rent" is a concept as flawed as is "core inflation". So taking two absurd "statistics" and working up a new result is well... also yet another absurd result.

So what we have here is a chart that shows that prices excluding food and energy and owner's equivalent rent are equally a non-event in the economy.

Never mind that the well known housing bust has clipped housing values by 25 to 35% nationally. ( About $3 Trillion )

He goes on to say: "...the same downward trend is there if you purge housing from the core index:" The really dumb part of this is of course that it's not housing that is striped from the index... It's what John Q Public thinks that he can get for rent right in the middle of a housing bust!

Krugman should stick to opinion blogging rather than his feeble attempts at explaining economics. Also, anyone reading his crap would be well advised to turn to more credible sources for their information on the status or direction of the economy... Krugman clearly doesn't know what he is writing about!